Accounts in Default

lemmony_2

Hello,

My partner has had issues with debt agencies approaching him for money for accounts he has no recollection of. He requested his credit report to be sent through but we don't really understand it. There are two accounts that say they are defaulted and closed but still have an outstanding balance. What does this mean? On one of the accounts the default balance and current balance are the same. On the other the current balance is below the default.
Neither of the companies have approached my partner for these amounts (and we don't have it available for them if they do). Are the outstanding balances on these accounts still expected to be paid at some point? Or is it resigned to the fact that it's been so long it's wiped by default?

Any help would be grately appreciated.

Wywth

lemmony wrote: »

Hello,

My partner has had issues with debt agencies approaching him for money for accounts he has no recollection of. He requested his credit report to be sent through but we don't really understand it. There are two accounts that say they are defaulted and closed but still have an outstanding balance. What does this mean? On one of the accounts the default balance and current balance are the same. On the other the current balance is below the default.
Neither of the companies have approached my partner for these amounts (and we don't have it available for them if they do). Are the outstanding balances on these accounts still expected to be paid at some point? Or is it resigned to the fact that it's been so long it's wiped by default?

Any help would be grately appreciated.

Your partner should ask the DCA for details of each and every alleged debt that he convieniently can't remember. He is entitled to this information.

If you lent someone money, would you expect it to be repaid? :huh:

CAB_Swansea_Bay_representative

Hi Lemmony, thanks for your query re accounts in default.
A default notice is a notice stating an account is in arrears (usually 2-3 months) and it is registered on your credit reference as a warning to other creditors about your credit worthiness and is also a requirement under the Consumer Credit Act before court action can be initiated. A default amount can be different from the outstanding balance for a number of reasons, for example your partner may have paid off some of the debt since the default notice was issued so the balance may be lower or the creditor may have added interest or charges so the balance may be higher. You said the companies have not contacted your partner to ask for the money but that debt collection agencies have which is a normal part of the debt collection process as the original creditor can appoint a debt collection agency to collect the debt or assisgn the debt to the debt collection agency to try to collect. Regarding your query about length of time to collect -a unsecured Consumer Credit Act regulated creditor only has 6 years from the last payment made on the account or last contact from the debtor to acknowledge the debt (usually in writing) to take court action so if these debts are over that limit they may not be able to take court action to collect the debt but a debt collection company may still be able to ask your partner to repay the money and the debt could still show on credit reference making it difficult to obtain credit.
I would suggest your partner seek advice from a debt specialist and you can find details of your local Citizens Advice Bureau at www.citizensadvice.org.uk.
Hope this is of assistance